Connect with us

Cryptocurrency

5 Short Squeeze Candidates To Watch This Week: Singing Machine Company, Revlon And More

igor m

Published

on

Potential short squeeze plays gained steam in 2021, with new retail traders looking for the next huge move.

A short squeeze can occur when a heavily shorted stock rises in value instead of falling. Short sellers could be looking to close out their position and can face a loss if they have to buy back the shares they initially borrowed at a higher price.

A squeeze can occur when short sellers are forced into buying to cover their position, which can cause shares to move up higher on many occasions.

Fintel Data, which requires a subscription, provides a look at several of the top shorted stocks and how likely a short squeeze is to occur. Here’s a look at the top five short squeeze candidates for the week of July 11:

The Singing Machine Company: Karaoke audio equipment company The Singing Machine Company MICS tops the short squeeze leaderboard for the week. Shares of the company have risen from $5.50 to $8 in the last month. Fintel data shows 80.3% of the company’s float short and a cost to borrow of 106.5%, a combination that could suggest a short squeeze.

AeroClean Technologies: Air sanitization company AeroClean Technologies AERC is no stranger to the short squeeze leaderboard and comes in second place to start the week. Data shows 40.3% of the company’s float short and a cost to borrow of 320.9%, among the highest for the week. The company has been listed as a COVID-19 play with sanitization solutions for hospitals, offices and businesses against the virus.

Revlon: Cosmetics company Revlon Inc. REV continues to rank high on the short squeeze leaderboard. The company, which declared bankruptcy in June, has 53.9% of its float short and a cost to borrow of 894.0%, one of the highest figures on record. Shares of Revlon traded at under $5 prior to declaring bankruptcy and quickly fell to under $2. Shares have since rebounded and now trade higher than they did prior to the bankruptcy filing.

Applied UV: Infection control company Applied UV Inc. AUVI ranks fourth on the leaderboard with 36.9% of the float short and a cost to borrow of 181.2%. The company offers disinfectant systems for public use and hospitals.

Pennsylvania Real Estate Investment Trust: Mall owner and operator Pennsylvania Real Estate Investment Trust PEI ranks fifth on the leaderboard for the week. Data shows 393.2% of the float short, which may be elevated due to a reverse split. The cost to borrow on shares is 10.1%.

Related Link: 5 Short Squeeze Candidates To Watch This Week: Redbox And Chicken Soup For The Soul Both In Top Five

Other Stocks To Watch: Past the top five short squeeze candidates, two stocks made big jumps this week into the top 15 and could be short squeeze candidates in the future.

Outdoor cooking company Weber Inc. WEBR jumped 31 positions to 11th place. Data shows 58.2% of the float short and a cost to borrow of 60.3%.

Software company MicroStrategy Inc. MSTR jumped 44 positions to 12th place on the leaderboard. Data shows 37.1% of the float short and a cost to borrow of 10.6%. The company is a large holder of Bitcoin BTC/USD and a popular short candidate for those believing the price of the leading cryptocurrency will keep falling.

Cryptocurrency

Hong Kong allocated another $50 million to the crypto industry

igor m

Published

on

Hong Kong Cryptoindustry

Hong Kong has allocated another $50 million to accelerate the development of the crypto industry after local authorities allocated HK$50 million (about $6.37 million) in late February to develop the Web3 direction. This is stated in a press release on the website of the government.

Legalization of cryptocurrencies in Hong Kong

According to the head of the Financial Services and Treasury Bureau of Hong Kong (FSTB) Christopher Hui, the pool of funds will be allocated, in particular, to organize major international Web3-events. Hui also said that the government will organize educational programs for young people, for which preparations have already begun.

In addition, the 2023 budget provides for the creation of a working group to focus on developing virtual assets and study the situation in the crypto market, development opportunities and the need for changes in regulation.

“Hong Kong is well positioned to become a leading hub for Web3 in Asia and beyond, and we attach great importance to virtual assets (VA) and Web3. The government is committed at a high level to developing this sector and providing a comprehensive support system for enterprises,” Hui said.

He added that the Hong Kong Monetary Authority (HKMA) is now working on regulating stablecoins to introduce them into the economy next year. The country also plans to improve securities regulations so that retail investors can access ETFs based on cryptocurrency futures.

Despite several personal initiatives, Hong Kong authorities are also working closely with mainland China, testing international payments in the digital currency and working with the Central Bank. In all, as of the end of February, more than 80 Chinese companies had expressed interest in operating in Hong Kong.

Bloomberg wrote about China’s support back in late February. The agency pointed out that after Hong Kong set out to develop the crypto industry last October, Chinese officials have become more frequent visitors to Hong Kong. According to sources, this interest is because Beijing wants to use the city as a testing ground for digital assets amid tight control of crypto activity on the mainland.

We previously reported that the collapse of the Silicon Valley Bank is spurring demand for crypto apps.

Continue Reading

Cryptocurrency

Tether printed for one billion dollars on the TRON network

igor m

Published

on

Tether TRON

Stablecoin issuer USDT is rapidly printing “digital dollars” in the TRON (TRC-20) ecosystem. This time, Tether printed another billion dollars in USDT, according to transaction details. The total number of USDT in circulation in the TRON ecosystem is over 42.1 billion USDT. By comparison, the Ethereum ecosystem issued significantly less – 34.2 billion USDT.

As TRONScan data shows, this is the second billion-dollar tranche issued by Tether for TRON. The last time the USDT-issuing company issued a similar amount of Stablecoin was on March 14. Since the beginning of 2023, this is the fourth transaction to issue such a large amount of USDT. As of 2023, the largest issuance occurred in February. At that time, Tether issued two billion dollars in USDT at once.

Amid the news, bitcoin barely reacted to the USDT pump. According to TradingView, the bitcoin (BTC) exchange rate in the BTC/USDT trading pair is $27,949, up just 1.4% overnight. Bitcoin has a market capitalization of $540.4 billion.

In early March, The Wall Street Journal revealed that Tether had opened bank accounts using fake documents and shell companies. It turned out that one of Tether’s Turkish accounts had been opened in the name of Denix Royal Dis Ticaret Limited Sirketi, which had previously been caught laundering money for a terrorist group.

Tether chief technology officer Paolo Ardoino ridiculed the publication on Twitter and said the WSJ’s information was untrue. Tether said it adheres to legal requirements to combat money laundering and terrorist financing, and uses KYC mechanisms of the highest level. Renowned cryptocurrency critic Molly White, for her part, said that The Wall Street Journal journalists couldn’t “just make this stuff up.”

We previously reported that major cryptocurrency exchanges have moved offshore.

Continue Reading

Cryptocurrency

Where are crypto exchanges registered? Major crypto exchanges have moved offshore

igor m

Published

on

Where are the crypto-exchanges registered?

According to a report by platform CoinGecko, 21 of the 30 largest crypto exchanges (70%) are based in offshore financial centers – territories that want to attract companies from abroad through loyal laws and schemes with low or no taxation. 

Analysts of the service note that offshore zones, as a rule, offer non-residents more financial services and on more loyal terms than “in the home country”.

Where are crypto exchanges registered? They choose islands

Seychelles, the Cayman Islands and the British Virgin Islands were among the most popular offshore locations for cryptocurrencies. These territories are also considered tax havens for many corporations.

Also, one in five Crypto exchanges in offshore locations (20%) are registered in the Seychelles. This jurisdiction has become home to many centralized exchanges. Among them, there are well-known major platforms such as OKX, KuCoin, and MEXC Global. Many companies are “moving” to the Seychelles because the Seychelles Financial Services Authority (FSA Seychelles) refuses to license and oversee activities or companies related to cryptocurrencies. 

In total, according to CoinGecko, the top 30 cryptocurrency exchanges are listed in 15 different countries: 11 of the 30 platforms (37%) are in North America – mostly in the Cayman Islands, British Virgin Islands and the United States. The number of companies located in Europe, Asia and Africa is evenly split: 20% each (or 6 countries).

The number of companies offshore may grow

Because of stricter U.S. regulators’ policies toward cryptocurrency companies, many firms are having to move to more cryptocurrency-friendly countries.

For example, the Hong Kong government, to turn the state into a new crypto hub, has allowed retail investors to trade digital tokens such as bitcoin (BTC) and Ethereum (ETH). The Hong Kong authorities themselves admit that they want to create a “favorable environment” for developing the local crypto industry.

Also, Ras Al Khaimah, one of seven regions in the United Arab Emirates (UAE), is preparing to open a free zone for cryptocurrency companies. Entrepreneurs in these areas own 100% of their businesses and have their own tax schemes and regulatory frameworks.

We previously reported on the Top 5 low-cost AI tokens with huge growth potential.

Continue Reading

Trending

©2021-2023 Letizo All Rights Reserved